© 2006 Pearson Education Canada Inc. 7.1 Canadian Advertising in Action Chapter 7 Media Planning Essentials

© 2006 Pearson Education Canada Inc. 7.2 Learning Objectives  Assess roles & responsibilities of client and agency in media planning  Differentiate among objectives, strategies and execution  Utilize media terminology  Describe media selection process  Identify advertising budget factors  Describe advertising budget methods

© 2006 Pearson Education Canada Inc. 7.3 Media Planning Client provides relevant information to agency in the form of a media brief. 1.Market Profile 2.Product Media Profile 3.Competitor Media Usage 4.Target Market Profile 5.Media Objectives 6.Media Budget

© 2006 Pearson Education Canada Inc. 7.4 Media Planning Process Media Execution Marketing Plan Media Objectives Media Strategies Creative Plan Advertising Plan

© 2006 Pearson Education Canada Inc. 7.5 Media Objectives Who Whois the target market? What Whatis the message? Where Whereare the priority markets? When When is the best time to advertise? How Howmany, often, long?

© 2006 Pearson Education Canada Inc. 7.6 Media Strategies Target Market Nature of Message Reach/Frequency/ Continuity/ Flexibility Market Coverage Numerous factors are considered for achieving objectives: Timing of delivery Competitor media usage Media alternatives Budget

© 2006 Pearson Education Canada Inc. 7.7 Target Market Media Strategies Profile- match Profile- match Rifle Road- block Road- block Shotgun Explain why roadblocking is not useful in rifle or profile-matching strategies.

© 2006 Pearson Education Canada Inc. 7.8 Balancing Strategic Variables ReachHow many? FrequencyHow often? ContinuityHow long? How flexible is the plan? Can it be altered?

© 2006 Pearson Education Canada Inc. 7.9 Reach The total unduplicated audience [individuals or households] exposed to a message one or more times in a period (week). Reach Formula = # households tuned in # households in area = or = 20%

© 2006 Pearson Education Canada Inc Frequency The average number of times an audience is exposed to a message over a period of time (week). Frequency = Total Exposures Formula Reach = = 5.0

© 2006 Pearson Education Canada Inc Continuity: The length of time required to generate impact on a target audience. Continuity / Flexibility Flexibility: ability to modify media spending plans throughout the scheduled advertising period.

© 2006 Pearson Education Canada Inc Gross Rating Points GRPs refer to the weight of a media schedule against a pre- determined target audience. GRP = Reach (%) x Frequency = 50 x 3.5 = 175

© 2006 Pearson Education Canada Inc Impressions Impressions, or total exposures, are the total number of commercial occasions multiplied by the total target audience potentially exposed to each occasion. Impressions = Reach x Frequency = x 4 =

© 2006 Pearson Education Canada Inc Media Coverage  National  Regional  Key Market  Selective Identifying the number of markets where advertising will occur.

© 2006 Pearson Education Canada Inc Advertising Flights 8.10

© 2006 Pearson Education Canada Inc Scheduling Options

© 2006 Pearson Education Canada Inc Media Alternatives Television Radio Newspaper Magazines Out-of-Home Direct Response Internet Television Radio Newspaper Magazines Out-of-Home Direct Response Internet 1.Assess pros and cons of each 2.Identify primary and secondary media 3.Budget is key influence

© 2006 Pearson Education Canada Inc Budget Influence on Media Strategy Media Mix: Primary & Secondary Media Selective Media Usage Small Budget Large Budget Reach Frequency Continuity Coverage Timing Competition Media Type Limited strategy Flexible strategy

© 2006 Pearson Education Canada Inc Media Selection Process

© 2006 Pearson Education Canada Inc Media Execution Media Scheduling and Budgeting (Blocking Chart) Media Buying (Negotiation)

© 2006 Pearson Education Canada Inc Agency Role in Media Planning A media director oversees staff responsible for developing the plan and selecting, scheduling, and buying time and space. Computers play a key role in media planning. Pre-buy Analysis Pre-buy Analysis Estimated audience deliveries in a schedule Post-buy Analysis Post-buy Analysis Actual audience deliveries

© 2006 Pearson Education Canada Inc Factors Influencing Budgets 1.Customer Characteristics 2.Degree of Competition 3.Product Life Cycle 4.Management Attitude

© 2006 Pearson Education Canada Inc Budgeting Methods 1. Percentage of Sales 2. Fixed Sum per Unit Sold 3. Industry Average 4. Task 5. Share of Advertising / Share of Market